My thread has been following the case and in July it was settled:
https://www.elitetrader.com/et/threads/karen-at-court.312629/page-10
What if Karen the Super Trader had an effective hedge?
- Thread starter Sweet Bobby
- Start date
My thread has been following the case and in July it was settled:
https://www.elitetrader.com/et/threads/karen-at-court.312629/page-10
I feel like this would have been helpful in this thread 4 pages ago.
I thought people were aware of that thread.
Anyhow, there are 2 questions remained for people with curiosity and brain:
1. What was in the settlement? (we will never know, probably no admission of guilt but payment to the investor)
2. What caused Karen to lose money in 2014 Oct, when the market didn't do anything special? (we can guess, greed and overextension)
And because I am extra curious:
3. Where does Bobby get this 300 MM AUM thingy? I would really love to see a link...
My personal guess of Karen's story in the last 3 years:
She had to stop making the scheme trades, and that freed money up to actual trading. The scheme trades tied most of her money down, so she couldn't actually trade, just keep rolling the losses.
She eventually took a big loss, as a result she won't get paid for 1-2 years and she has to pay her employees out of pocket. But if she kept doing the same strategy, because of the bull market, she should have made 20+% in the last 2-3 years, thus able to recover and even get new investors. She might have rewritten her HF agreement to include annual fees, instead of the high water mark feature.
And this is where we stand....If she has brain, she might employ some of the Yahoo boys, who did better than her....
She had to stop making the scheme trades, and that freed money up to actual trading. The scheme trades tied most of her money down, so she couldn't actually trade, just keep rolling the losses.
She eventually took a big loss, as a result she won't get paid for 1-2 years and she has to pay her employees out of pocket. But if she kept doing the same strategy, because of the bull market, she should have made 20+% in the last 2-3 years, thus able to recover and even get new investors. She might have rewritten her HF agreement to include annual fees, instead of the high water mark feature.
And this is where we stand....If she has brain, she might employ some of the Yahoo boys, who did better than her....
I've held options and been unaware of earnings (actually, recently...on DSW, of all thing)...my awareness operates on a strict one-in one-out policy.--fortunately my risk management takes into consideration a great deal of operator stupidity.I thought people were aware of that thread.
Ending a back test of the strategy on 1/31/18?
I know he likes long-range sea birds and has an interest in alternating current...and similar black-swan-blowout potential.
That being the case, I'm sure you'll find the Ph.D. a waste of time. Then again, as you're looking for a hedge, the Ph.D. can be your own hedge in case your trading doesn't produce as you expect.
And keep in mind this is signed by Karen herself. It's simply an attestation of someone who has (I say this again) previous used her professional expertise to obscure financial reality.
Finally I have found what Bobby keeps referring to: (I don't know why he didn't provide the link)
https://www.sec.gov/Archives/edgar/data/1516872/000151687217000001/xslFormDX01/primary_doc.xml
The previous years can be accessed from here:
https://whalewisdom.com/filer/hope-investments-llc
So Karen X-ed in AUM more than 100 MM and under 13. Offering and Sales Amounts it says: 238 MM
Last year the same was 175 MM.
https://www.sec.gov/Archives/edgar/data/1516872/000151687217000001/xslFormDX01/primary_doc.xml
The previous years can be accessed from here:
https://whalewisdom.com/filer/hope-investments-llc
So Karen X-ed in AUM more than 100 MM and under 13. Offering and Sales Amounts it says: 238 MM
Last year the same was 175 MM.